According to leaked United States government emails, an official from the United States trade criticized an earlier move by the Indian government to ban further terming it as a ‘draconian’ move which caused resulted to panic.
According to the documents, the United States government expresses its frustrations with the decision by the central bank of India, Reserve Bank of India (RBI) to ban issuance of new cards by America Express (AXP), Diners Cub International and Mastercard Inc. (MA) during the beginning of the second quarter of the year.
India’s central bank alleged that the companies affected by the ban were breaking domestic data storage laws. Nonetheless, the ban did not affect the existing clients of the companies.
This ban led to emails confrontation between United States senior government officials in Washington and India as they sought to arrive at a solution on the matter but in vain.
“We’ve had very constructive engagements with the Indian and U.S. governments over the past few weeks and appreciate the support of both,” said Mastercard’s spokesperson.
The spokesperson further revealed that they even reached out the Reserve Bank of India in efforts to try and find a solution on the matter taking shortest time possible.
